I wish I had more time today to write longer on this subject…but I don’t.
Here is my prediction:
Hardware as a service will become the norm.
Hardware as a service is the idea of giving out hardware for “free” or close to it and then charging for the “use” of the software from it.
Think of the cost of the hardware as just part of the marketing / customer acquisition cost. Think of the service as ARR per device.
The cost of hardware (the pieces, the wires, chips, etc.) is decreasing at an increasing rate year over year.
It’s really quite simple business/marketing jargon that best explains the reasons that this works:
If you can build a box that delivers value over the life-time of a customer that exceeds the cost of acquiring said customer — than you have something that generates positive revenue.
The obstacles of course are there. But I am overall long on this and think it will be much more common in the near future.
No one is really talking/writing about this right now -> but it is happening…just you wait!
I recommend checking out Pluot 🙂